Exclusive FNG interview… 2023 has been a very busy year for M&A activity in the FX and CFD brokerage sector. And with industry consolidation being one of the key themes of the year in the top FX and CFD trading industry news of 2023, we thought it would be a good time to catch up with Joe Li, President of ATFX Group, who has been very involved. in much of the action.
How does ATFX approach M&A activity?
What is Joe’s outlook for the industry in 2024?
Here’s what he had to say, exclusively on FNG.
FNG: Hi Joe, and thanks for joining us today. One of the key themes of the FX and CFD sectors for 2023 has been industry consolidation and ATFX has certainly been at the center of a lot of action, acquiring Rakuten Securities Australia as well as South African licensed broker Khwezi as well as the SCA license in Dubai . How do you view acquisitions as a key strategic tool for ATFX?
Joe: The acquisitions of Rakuten Securities Australia and Khwezi not only expand our geographic reach but also deepen our global strategy in the following ways:
First, by acquiring established players such as Rakuten Securities Australia and Khwezi, we strengthen our market share and competitiveness in a fast-moving industry where consolidation is common. The pooling of resources under the reputation licenses of ASIC in Australia and FSCA in South Africa significantly strengthens ATFX’s global footprint. More importantly, the corresponding license allows us to better provide institutional clients in the relevant regions with a global ATFX liquidity and enhance competitiveness under ‘ATFX Connect’, our institutional business brand.
Second, with mature global success experience, acquisitions provide us with access to new markets and customer segments. By merging with or acquiring other companies, we gain a broader customer base, which can be leveraged to cross-sell services, introduce new products and grow revenue streams. This approach helps us differentiate our offering and capture untapped market potential.
In addition, acquisitions also facilitate the transfer of knowledge and expertise. By pooling the talent and experience of the acquired companies, we can strengthen our technology, compliance, risk management and customer service capabilities. This constructive partnership allows us to stay ahead of the competition, adapt to evolving customer demands and deliver a superior service experience.
FNG: What changes have you seen in the online trading community in the past? How is ATFX preparing to address these changes as we turn the calendar page to 2024? Can you share your main goals for 2024?
Joe: In recent times, the online trading community has seen significant changes. These changes have been fueled by advances in technology, market trends and evolving investor preferences. As we approach 2024, we recognize the importance of adapting to these changes and staying ahead of the competitive landscape.
We have outlined several important goals for 2024 to address the transformations in the online trading community. First, we aim to further improve and streamline our online trading platform to provide our customers with a seamless and user-friendly experience. This includes continuously improving platform functions, optimizing performance and incorporating cutting-edge technologies.
Additionally, we recognize the growing importance of social commerce and the rise of impact-driven investment decisions. To respond to these trends, we aim to enhance our social trading capabilities by integrating advanced social trading tools and platforms. This will allow our clients to benefit from the collective wisdom of experienced traders and make informed investment decisions.
Additionally, as the online trading community becomes more global, we are committed to expanding our global presence. We will focus on entering new markets, creating strategic partnerships and strengthening our multilingual customer support services. This will ensure that we can meet the diverse needs of merchants around the world.
FNG: ATFX is one of the few brokers that operates properly licensed businesses in various locations around the world including UK, EU, Australia, South Africa and UAE. Where do you see the greatest growth and opportunity for ATFX, both geographically and product-wise?
Joe: When considering the potential growth and opportunities for ATFX, it would be beneficial to analyze the current market trends and demands in each location.
In terms of geography, we already operate in the UK, Cyprus, Australia, South Africa and the United Arab Emirates. It would be prudent to assess performance and growth potential in each of these markets separately. Consider factors such as the regulatory environment, economic conditions, market saturation and the needs of the target audience. By conducting a comprehensive analysis, we can identify the locations that offer the greatest growth and opportunity for ATFX.
In terms of products, it is important to assess the demand and potential profitability of each product category offered by ATFX. Consider factors such as market demand, competition, differentiation and scalability. By identifying the most in-demand products and exploring new opportunities, we can maximize growth and take advantage of potential market opportunities.
We will base our analysis on specific data and research to ensure accuracy and reliability. In addition, staying informed about market trends and continuously monitoring ATFX’s performance in each location will help make informed decisions about geographic expansion and product development.
FNG: How is ATFX Connect’s London-based, FCA-regulated institutional operation shaping up? What do you see as the key goals for this business in 2024?
Joe: ATFX Connect, our institutional arm of the ATFX Group, is active in 2023. In July, we officially joined the Global FX Code of Conduct, which promotes the integrity, fairness, transparency and efficient operation of global forex markets, demonstrating our commitment to standards of integrity, fairness, transparency and efficiency in the marketplace.
In addition, we have already announced our partnership with EBS Direct, a well-known electronic trading platform that has been a trusted source of institutional liquidity and price discovery in the e-FX sector for almost thirty years. With EBS Direct, ATFX Connect can offer our institutional clients direct market access to tailored liquidity and connectivity solutions in Spot FX and Precious Metals, further enhancing our institutional electronic FX offerings.
In 2024, key goals for this business should include expanding our customer base and strengthening our technology infrastructure to provide more efficient and secure trading capabilities. With the solid and sound business foundation of ATFX Connect Agency and Margin businesses, the focus in 2024 will be to offer a customized ATFX ECN trading platform to our global institutional clients as well as expanding our institutional risk management team to enhance our unique liquidity offerings of ATFX.
FNG: What else can we expect to hear from ATFX in the coming months?
Joe: In the coming months, you can expect to hear many exciting updates from us. Our goal is to remain one of the most active brokers in the market. We have focused on expanding our product offerings and enhancing our services to better meet the needs of our customers.
One area of focus is technological developments as we aim to leverage cutting-edge tools such as our mobile app and platforms to deliver a seamless trading experience. Additionally, we are launching our automatic KYC onboarding process that allows our customers to complete online applications in minutes. It will start region by region in 2024.
In addition, we are strengthening our global analyst team by offering daily analysis for more than 10 languages daily along with unique ATFX educational resources as well as copy trading solutions, aiming to provide a comprehensive and diverse leading service. We are committed and dedicated to staying at the forefront of the financial industry and providing innovative solutions to global clients.